Question

You just sold 700 shares of Alcove stock at a price of $34.08 a share. Last year you paid $39.20 a share to buy this stock. You received dividends totaling $1.04 per share. What is your total capital gain on this investment

Answer 1

The correct answer is 3584 (Loss).

Step-by-step explanation:

According tot he scenario, the given data are as follows:

Purchase value = $39.20

Sale value = $34.08

Total share = 700 share

So, we can calculate the total gain by using following formula:

Total gain = (Sale value - Purchase value) × Total share

= ( $34.08 - $39.20) × 700

= -3584 ( Negative shows Loss)